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Effect of Age Diversity of Board Members on Performance of Non-Governmental Organizations in Kenya
No full textJournal ArticleThe purpose of the study was to establish effect of age diversity of board members on performance of non-governmental organizations in Kenya. The scope of the study covered both local and international NGOs in Nairobi County. The Directory of Development Organizations identified that 702 NGOs are registered in Nairobi, Kenya. The study employed a descriptive research design and adopted questionnaires as its data collection tool. A sample of 84 respondents was targeted.
The findings established that age diversity of the board members in their organizations was of low consideration shown by a mean of 2.8438 for and a standard deviation of 0.51490. Age diversity in boards positively impacts social performance as indicated by the mean of 3.3125 with a standard deviation of 0.73780 showing no much variance of the responses given from the mean response calculated. Age diversity in board members improves the overall level of knowledge of the organization at the age level (mean = 3.4688; std. dev. = 0.76134). Age diversity in board members broadened the debate within boards and helped to avoid the danger of narrow group thinking as indicated by a mean of 3.7812 with a standard deviation of 1.12836 In conclusion, regression and correlation analysis showed that indeed there was a relationship between age diversity and organizational performance (increase in; donations, project management and supervision, varied activities and employee workforce). The study recommends that the board composition should incorporate varied age groups
Internal Factors Influencing Strategy Formulation in the Telecommunications Industry in Kenya: A Case of Telkom Kenya
No full textA project report submitted to the Chandaria School of business in partial fulfillment of the requirement for the degree of Masters in Business Administration (MBA)The purpose of the study was to establish the influence of various internal factors in strategy formulation in the telecommunications industry in Kenya with a focus on Telkom Kenya. The study was guided by the following research questions: How does leadership influence strategy formulation? How does organizational culture influence strategy formulation? How does organizational structure influence strategy formulation?
The study used a descriptive research design. The target population of the study consisted of the managerial level employees at Telkom Kenya. The list of the employees was obtained from the company’s human resources department from the 68 employees identified, only 55 responded giving an 81% response rate. The sampling technique for this study was stratified random sampling technique. Questionnaires were used to collect data from the selected respondents. Data collected was analyzed using descriptive and inferential statistics. For this study, the data analysis tool used was the statistical package for social sciences (SPSS) computer software.
The findings revealed that respondents agreed that managers need to consult widely when selecting the firm’s vision, mission and values throughout the institution. It was also revealed that leaders must clearly communicate the organizations vision, mission and values. The findings also show that managers need to clearly elaborate the need for change in the organization and leaders need to forecast the future and make plans based on those forecasts .Managers should also involve their junior staff in strategy formulation. Finally, the analysis also revealed a positive correlation between leadership and strategic planning.
The analysis revealed that the firm has a formal strategic planning process. Additionally, respondents acknowledged that decision making in the firm should be data driven rather than by intuition. On the other hand, strategic decisions are primarily taken by upper cadre managers. The findings revealed that lower level employees should participate in strategy formulation and when the business environment is stable and predictable the firm can formulates long term plans. The analysis also revealed a positive correlation between organization culture and strategic planning.
Finally, the findings also uncovered that organizations with fewer top level managers can make decisions faster than those with many management levels. It was also established that there are strictly laid out process and procedures that hinder creativity and responsiveness to environmental changes. The findings also established that a stable business environment calls for a lean management structure and less centralized organizational configuration with fewer management levels. This ultimately allows for employee participation in strategy formulation in the organization.
The study concluded that managers should consult widely when selecting the firm’s vision, mission and values and in order to ensure that the firms objectives are met, clear communication of the same is essential. It was concluded that a formal strategic planning process exists and all decisions made are based on the current data. Top management are in charge of the strategy formulation process and, the strategic goals and action plans need to be measurable and clearly communicated throughout the organization. As per the findings it was concluded that when there are fewer top level managers involved in the decision making, reaching a consensus is quick. The structure is also faulted for hindering creativity and responsiveness the dynamic changes in the Telecommunication sector.
It was recommended that there is a need for managers to involve the required stake holders in consultation before selecting the firm’s vision mission and values. There is a need to explicitly communicate to ensure that all the stakeholders are made aware of the vision, mission and values of the firm. The process of decision making should consider past data and the upper cadre managers should have the required knowledge, and experience to make the right decision. The process and procedures that hinder creativity and responsiveness to environmental changes need to be removed to ensure quick decision making. The firm should take an all inclusive approach to ensure effective employee participation in strategy formulation in the organization.
There is a need to undertake another study at the firm to analyze the influence of other internal factors such as staff competence, systems and skills. Similar studies also need to be undertaken in other telecommunication firms to be able to generalize the findings
Barriers to Strategy Implementation among Real Estate Companies in Kenya: A Case of Suraya Property Group Limited
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of this study was to investigate the barriers to strategy implementation among real estate companies in Kenya focusing on Suraya Property Group Limited. The study was guided by the following three research questions: What are the barriers Suraya Property Group Limited face while implementing their strategic plans? What solutions have Suraya Property Group Limited applied to handle the barriers they face while implementing strategic plans? Which of these solutions are deemed effective by the management of Suraya Property Group Limited?
This study adopted a descriptive survey research design. The sample population was the 95 employees of Suraya Property Group Limited. A stratified sampling technique to select a sample size of 76 respondents was used. Data was analysed both for descriptive statistics (frequencies and percentages) and inferential statistics (correlation analysis). Tables and figures were used in presenting data results.
The findings on barriers to strategy implementation established that majority of the respondents agreed that barriers to strategy implementation were: lack of sufficient resources to operationalize the strategic plans; the Suraya management did not put in place adequate plans to coordinate the implementation of the strategic plans; the strategic plans did not take into account personal expectations hence the stakeholders were not motivated towards the implementation process; people did not just buy-in the idea in implementation of the strategic plan; and, there was no accountability and there was a feeling that the resources for strategic plan implementation were somehow misappropriated.
Findings on the solutions to strategy implementation barriers showed that there should be the idea that clear communication from the top management to various operational units, allocation of adequate financial resources in execution of the strategic plans, relevant members of staff should be involved during strategy planning and development, staff should be motivated and sensitized on the strategic plans, proper monitoring system for the implementation of the strategic plans, and flexible strategic plan to take care of unforeseen circumstances like inflation, new government legislation, among others.
The findings of this study revealed the existence of a statistically significant relationship between solutions and effective solutions to strategy implementation barriers. Effective communication and employee involvement were cited as effective solutions to strategy implementation barriers.
The study recommends that the management of Suraya Property Group Limited should put more effort in ensuring effective communication during strategy formulation and its implementation. This is assumed to bridge the gap between formulators and implementers. Information flow should be fast and clear from the top management to the individual staff in various operational units in Suraya Property Group Limited. Employee involvement was another effective solution. Suraya Property Group Limited should apply this concept of involving relevant staff members when developing strategy and during its implementation. The strategic plans are formulated and implemented by people, as a result, staff involvement becomes key. When the employees are involved, their opinions, and aspirations will be taken into consideration; in effect, implementation process will be in synchrony with their personal objectives, passion, skills and talents. It is suggested that such a study be done in other firms in other sectors to increase the statistical power of the study and more reliable results. There is therefore a great potential for research in this direction. This study can also be improved by looking at post implementation of strategic plans
Factors Affecting Access to Formal Finance by Youth Owned SMEs in Kenya: A Case of Kiambu County
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)he purpose of the study was to determine the factors affecting financial access to youth owned businesses in the small and medium sized enterprises in Kenya using Kiambu County as a case study. The study was guided by the following research questions; What is the effects of entrepreneur characteristics on financial access among the youth SMEs in Kiambu County, how does lending requirement affect financial access for youth owned businesses in Kiambu County and What is the effect of business characteristics on financial access for youth owned businesses in Kiambu County Descriptive research design was used to carry out the study. The target population was 2,750registered youth SMEs in Kiambu County. Of the registered SMEs in Kiambu County an estimated 2,751 registered SMEs have between 1 and 50 employees. This study employed stratified random sampling design in obtaining sample from the clients. Descriptive statistics was used to analyze data that was collected. Pearsoncorrelation and regression analysis were used to determine how independent variables influences dependent variable. Statistical Package for Social Sciences (SPSS) software was used to analyze the data. Out of 96 questionnaires that were distributed only 57 were filled and returned giving a response rate of 59%.The first objective set to establish effect of business characteristics on financial access for youth owned businesses in Kiambu County. Findings revealed thatmanufacturing industries faces more challenge accessing finance as compared to SME‟s in trading and service industry, smaller SME‟s experience a challenge accessing finance as compared to larger SME‟s, years of business has been around influences access to finance and registered SME‟s are more likely to borrow than non-registered SME‟s. The second objective set to establish effect of lending requirement on financial access among youthSME‟s in Kiambu County. Findings revealed that high interest rate influences access to finance, financial institutions use collateral as security before issuing finance to SME‟s, SME‟s have enough collateral to qualify for a loan and proper maintained and managed financial records and loan repayment period affects SME‟s access to finance.
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The third objective set to establish effect of entrepreneur characteristics on financial access among youth SME‟s in Kiambu County. The findings revealed that respondentsthat gender and networking influence access to finance. In addition, through networking SME‟s are able to improve their performance. SME‟s need more training to access loan and lenders consider education level before offering funds. The study concluded thatmanufacturing sector faces a challenge accessing finance more than SME‟s in trading and service industry, size and age, interest rate, collateral financial record, gender and networking influences access to finance.It was recommended that more research to be done to determine other factors that SME‟s access to finance. Furthermore, this study was based on SME‟s in Kiambu County only it is therefore recommends that a similar research should be done in other counties to determine whether the factors affecting SME‟s access to finance are similar to another
The Influence of Information Technology Innovation on the Operational Performance of Commercial Banks in Kenya
No full textA Research Project Submitted to Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Master of Business Administration (MBA)The purpose of this study was to establish whether ICT-based innovations influence operations performance of commercial banks in Kenya. The study was guided by the following research questions: How does ICT-based product innovations influence operations performance? How does ICT-based process innovation influence operations performance? How does ICT-based market innovations influence operations performance?
A descriptive survey research design was adopted for this study. The study had a population of 43 commercial banks operating in Kenya, out of which, all were sampled for the study. Purposive sampling was used to identify operations managers who took part in the study. Data was collected using closed-ended structured questionnaire. Data was analyzed for descriptive statistics (frequencies and percentages) and inferential statistics (correlations and regressions) using Statistical Package for Social Sciences (SPSS) version 22
The findings on research question one revealed the existence of a statistically significant relationship between ICT-based product innovations and operations management. All components under product innovation, including tangible and intangible products, management support contributed to the significant relationship
The second research question revealed that there exists a statistically significant relationship between ICT-based process innovations and operations performance. All components examined under ICT-based process innovation including process re-engineering, process management support, and customer service contributed to the significance of the relationship
The third research question revealed existence of a statistically significant relationship between ICT-based market innovations and operations performance. ICT-based market innovation examined included use of Facebook platforms, Twitter, LinkedIn, and YouTube platforms, which, all contributed to the significance of the relationship
This study concludes that all components examined in this study including tangible products, intangible products and management support, were all essential in determining operations performance at commercial banks. The study also concludes that management support, process re-engineering, and customer service delivery all contribute to enhancing operational performance of commercial banks. Finally, this study concludes that Facebook, Twitter, LinkedIn and YouTube social media platforms significantly contribute to commercial banks operational performance by advancing banks performance agenda, strategic operational objectives, and acquisition of new clients.
This study recommends that management in commercial banks should develop ICT incubation centers within the banks that have the mandate to develop product innovations. This will not only enhance the banks competitive advantage, but also operational performance. This study also recommends that management in commercial banks should explore mechanisms for enhancing the use of process re-engineering particularly to old processes and products. This can only be enhanced by use of ICT-based processes within organizations. Finally, this study recommends that commercial banks should invest more resources in developing robust content for engaging social media platforms such as Facebook, Twitter, YouTube and LinkedIn. Facebook has millions of users daily; thus, enhancing use of Facebook means that more potential clients could be reached with the banks advertising and other relevant information necessary for operations performance
Factors Causing Corporate Financial Distress in Commercial Banking Sector in Kenya: A Case of Chase Bank
No full textA Research Project Proposal Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA)The general purpose of the study was to establish the factors causing corporate financial distress at chase bank. This study was guided by the following research questions: Does management type determine corporate financial distress at chase bank. Does capital adequacy determine corporate financial distress at chase bank? Does effectiveness of credit management determine corporate financial distress at chase bank?
A descriptive research was adopted because the study was aimed at collecting information from respondents on their perceptions in relation factors causing corporate financial distress at chase bank. Further, the correlational approach was adopted as the study sought to describe relationship between the independent – management type, capital adequacy, and credit management - and dependent variables – financial distress. The target population for this study comprised of Managers, Heads of departments and assistant managers (who are in the operational level in their structure in the 77 Chase bank branches. From the initial target population of 152, sample size of 110 was arrived at and only 71 were filled and returned giving a response rate of 65%.
It was established that quality of management affect financial distress and the bank has got managerial restructuring policy with which the majority of the respondents agreed with. It was also revealed that corporate decisions process affects financial distress and the Management of disputes was critical in realization of goals. At the same time, it was clear from the findings that the decline in capital relative to assets is as an indication for potential financial difficulties. The findings also established that Chase bank had credit management policy. It was also noted that most respondents agree that Firms that are financial distress have less trade receivables. It was also established that Firms in financial distress are forced into bankruptcy when they fail to satisfy their agreements with their suppliers.
The study concluded that the banking institution has applied a transformational leadership style in the day-to-day running of the institution. Maintenance of a policy manual is necessary in the sector and needs regular updates to be up-to-date with the dynamic changes in the sector. It was also concluded that capital adequacy evaluation is vital however the bank has not embraced it and this could the reason why chase bank collapsed. The bank should increase its ability to deal with its internal losses in case of crisis. The liquidity ratio should also be revisited since it is not properly focussed on In
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addressing the third research objective, considering the relationship between credit management and profitability, commercial bank managers must expand efforts to credit risk management, especially to control the non-performing loans.
It is recommended that the bank should ensure that their policy manual is maintained and updated regularly, the institution also need to have in place policies to help guide the firm to overcome dynamic changes in the sector. As banks with capital inadequacy are vulnerable to financial distress, chase bank may consider enhancing its incentives on proposals for mergers, consolidations, and acquisitions among rural banks or other strategic alliances and business combinations, primarily for economies of scale and other valuable reasons. The regulatory bodies need to be equipped with enhanced information technology systems that can monitor loan losses, capital adequacy, and other credit and profitability indicators off-site. More research needs to be done on the other factors such as strategy, structure, systems, and goals to determine which one significantly affect Chase bank. The same variables also need to be tested on other banks in order to generalize the findings in the banking sector
Factors Influencing Employee Intention to Quit an Organization: A Case of Graduate Students in USIU-Africa
No full textA Research Project Report Submitted to the School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of this study was to analyze the various factors that take place in Kenyan organizations that can trigger an employee’s intention to quit a case of graduate students in USIU-Africa. The following research questions guided the study: To what extent is the perceived leadership styles of managers affect employees’ intention to quit: To what extent does employees’ organization based self-esteem impact intention to quit: To what extent does perceived supervisor support impact employee intention to quit: To what extent does organization justice influence employee intention to quit an organization.
The population of the study was composed of 60graduate students of USIU under the various graduate programs. The graduate students were chosen at random from their respective graduate courses in the different schools. Descriptive survey research design was used for this study and close- ended questionnaires were used to collect primary quantitative data for this study. Data that was collected was analyzed using descriptive statistics and inferential statistics. Data findings of this study are presented using tables and figures.
The findings indicated that the correlation between leadership and turnover intent was statistically significant, r = -.482, p. | r | < .5.
The findings showed that the correlation between organization based self-esteem and perceived supervisor support was statistically significant, r = .620, p. .5
The findings indicate that perceived supervisor support has a significant correlation with organizational justice, r = .688, p. .5
The findings indicate that organizational justice and turnover intent was found to be statistically significant at r= -.355, p. | r | < .5.
This study concluded that leadership that an organization adopt affects the intention of the employees to quit their work and this is because leadership style is directly related to the organizational justice that is extended to the employees; employees’ organization based self-esteem affects the intention of the employees to quit their jobs; there is strong relationship between perceived supervisor support and the employees’ intention to quit; there is a strong relationship between organizational justice and the employees’ intention to quit especially where the employees are treated with fairness, their financial and emotional needs are given a high priority by the management .
This study recommended that transformational leadership style is the most appropriate for organizations as it takes into account not the interest of the leaders but those of the employees as encourages innovation and freedom of expression. Secondly, organizations need to provide environments in which the employees will realize their self-worth and hence seek to demonstrate it through their contribution to the realization of the goals and objectives of the organization. Thirdly, organizations should be help employees in accomplishing their tasks rather than finding fault in their work. And finally, by creating a fair working environment should be the goal of organizations that are especially facing higher levels of turnovers
Factors Affecting Diffusion of Product Innovation in Medium Sized Manufacturing Enterprises in Kenya
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Master in Business Administration (MBA)The purpose of this study was to identify factors affecting diffusion of product innovation in medium sized manufacturing enterprises in Kenya. The study was guided by the following research questions: How does relative advantage affect diffusion of product innovation in medium sized manufacturing enterprises in Kenya? How does compatibility affect diffusion of product innovation in medium sized manufacturing enterprises in Kenya? How does complexity affect diffusion of product innovation in medium sized manufacturing enterprises in Kenya?
A descriptive correlation research design was used to conduct the study. The population comprised of 108 top 100 medium sized enterprises in the manufacturing sector between year 2008 and 2016. Stratified random sampling was adopted to select a sample of 102 manufacturing enterprises from the 108 total population. A questionnaire was used to collect data. Data was analyzed using descriptive statistical techniques such as mean and standard deviation whereas inferential techniques used included Spearman’s Rank Correlation, One way Analysis of Variance (ANOVA) and linear regression. Statistical Package for the Social Sciences (SPSS) was used as a data analysis tool. Thereafter, the data was presented in tables and figures.
Findings on the effect of relative advantage on diffusion of product innovation among medium sized manufacturing enterprises revealed that male respondents who agreed that relative advantage had an effect on the diffusion of product innovation accounted for 37% while that of female respondents accounted for 30%. Findings from Spearman Rank Correlation test indicated that there was a statistically significant positive correlation between relative advantage and product innovations that are perceived to be more cost effective diffuse faster among medium sized manufacturing enterprises, r(95) = .188, p < .05. One Way ANOVA results revealed that there was a statistically significant difference by gender F(1, 94) = 4.10, p < .05 and the years of enterprise existence F(1, 94) = 5.56, p < .05. Linear regression analysis indicated that relative advantage explained 67.3% of the variability on the spread of product innovation among medium sized manufacturing enterprises, R2= .673 and statistically significantly predicted the spread of product innovation, F(1, 94) =15.28, p < .05.
Findings on the effect of compatibility on diffusion of product innovation among medium sized manufacturing enterprises, revealed the proportion of female respondents who strongly agreed that compatibility had an effect on the diffusion of product innovation accounted for 47% while male respondents accounted for 29%. Spearman Rank Correlation test showed that compatibility was strongly correlated to technological innovation, r(95) = .235, p < .05 and lifestyles or cultures, r(95) = .213, p < .05 on the diffusion of product innovation among medium sized manufacturing enterprises. One Way ANOVA revealed that there was a statistically significant difference by gender F(1, 95) = 5.67, p < .05. The linear regression analysis indicated that compatibility explained 54.4% of the variability in diffusion of product innovation among medium sized manufacturing enterprises, R2= 0.54 and statistically significantly predicted the spread of product innovation among the medium sized manufacturing enterprises, F(1, 94) = 16.12, p < .05.
Findings on the effect of complexity on diffusion of product innovation among medium sized manufacturing enterprises revealed that the proportion of female respondents who agreed that complexity had an effect on the diffusion of product innovation accounted for 37% while male respondents accounted for 30%. Spearman Rank Correlation test showed that complexity was significantly correlated to clear communication, r(95) = .163, p < .05 on the diffusion of product innovation among medium sized manufacturing enterprises. The results from One Way ANOVA test indicated that there was a statistically significant difference by years of enterprise existence F(1, 95) = 4.56, p < .05. The linear regression analysis indicated that complexity explained 52.2% of the variability in diffusion of product innovation among medium sized manufacturing enterprises, R2= 0.52 and statistically significantly predicted the spread of product innovation among medium sized manufacturing enterprises, F(1, 94) = 13.69, p < .05.
The research concluded that relative advantage based on job effectiveness and convenience affected diffusion of product innovation. The study recommends manufacturing enterprises should establish unique and convenient product innovation strategies to tap in the market as well as perceive ease of use of innovative products as powerful in explaining satisfaction of customer needs and wants. The study suggests further research should be conducted to investigate the impact of access to diffusion of product innovation on the growth of medium sized manufacturing enterprises in Kenya
Importance of Financial Literacy on Management of Personal Finances among Millennials: Case Study USIU-Africa
No full textA Research Project Report Submitted to Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of the study was to assess the importance of financial literacy on the management of personal finances among Millennials. The study was guided by the following research objectives; to establish the level of literacy among the millennials, to explore the relationship between financial literacy and good money management practices and to explore the financial strategies employed by millennials to ensure future security after retirement.
A descriptive quantitative research design was adopted for this study and the data received from the questionnaire, used to interpret, with the aim of understanding the relationship of financial literacy on the management of personal finances among the Millennials. The select target population of this study consisted of USIU- Africa master’s students based in Nairobi. Determination of the sample size was made possible using the Slovin Formula, taking into consideration the confidence level and the confidence interval of the population. A sample size of 100 respondents was identified for this research study, with the response rate being 86%.
The data obtained was analyzed using the statistical tools, Statistical Package for Social Science (SPSS) and Microsoft Excel. The questionnaire consisted of both open ended and closed ended questions and the results were presented in the form of tables and figures. Pearson correlation analysis was used to investigate the relationship between the independent and dependent variables and multiple linear regression analysis was also used to analyze the findings.
Based on the first objective, which was to measure of the level of financial literacy among the millennials. The study has shown that most students in the master’s program havea basic understanding of financial literacy yet they engage with finance related decisions on a day to day as they manage their finances, this includes budgeting and saving,
The second objective was to explore the relationship between financial literacy and good money management practices. The data analyzed shows that there is a strong correlation between financial literacy and good money management practices. The findings show that the respondents do practice some form of good management practice like saving for emergencies and budgeting.
The final objective was to explore the financial strategies employed by millennials to ensure future security after retirement. The study has shown that masters students at USIU- Africa have investments, pension plans and insurance as part of their financial planning strategies, however they have a low satisfaction rating with the investments they currently hold.
The study concludes that financial literacy is very important to ensure millennials are able to navigate this fast-paced financial industry. With the current economic landscape investing, saving and retirement planning has shifted from being a government or employer concern to being an individual’s responsibility, it is due to this shift that financial literacy should be taken seriously.
The study therefore, recommends that education bodies should include practical financial education programs with real life simulations in the high school and university curriculum to ensure students are well equipped with financial knowledge when they enter the workplace. Employers should also offer financial planning courses as part of its training portfolio for employees to be able to take charge of their current financial situation and avoid financial distress due to lack of financial planning skills.
Further studies should be carried out on individuals in the informal sector to examine what major issues they face in their financial journey, what tools they require, and analyze the impact financial literacy can have on the management of their personal finance
The Effects of Strategic Planning On the Performance of Small and Medium Sized Enterprises in Nairobi
No full textA Research Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of the study was to establish the effects of strategy planning in the management of Small and Medium Enterprises (SMEs) in Nairobi. The study was guided by the following research questions: How the use of vision, mission and action plans in the strategic planning process lead to the performance of Small Enterprises, what are some of the strategic planning practices by SME’s and what is the influence of these SME’s performance?
The study used the descriptive research design because it employs a survey research. The population consisted of all SMEs in Nairobi. The sampling frame was obtained from the East African Business Directory as at 2017. The study adopted probability sampling and specifically stratified random sampling. The sample size for this study was 30. The researcher used questionnaires to collect data from the target population. The researcher coded and input the data into the Statistical Package for Social Sciences (SPSS) software for analysis. Data was analyzed using descriptive analysis that included means and percentages to show the frequency of responses and ratings of various items of the questionnaires. The standard deviation was used for analysis to indicate the measure of variability between the questionnaire items. Inferential statistics was utilized to measure the existing relationship between study variables. Correlation analysis was used to determine significant factors for strategic planning (independent variable) and performance of SMEs (dependent variable).
The study showed that that a company’s mission and vision are crucial elements of strategic management in the organization, and business vision and growth are reinforced by strategic focus on market growth and profits. The study revealed that strategic planning has helped owners/ managers establish benchmarks or milestones that show them whether or not they are meeting their goals and objectives, and SME owners/ managers include employees in the decision-making plan of their business. SME owners/ managers have developed a decision-making routine that simplifies the process of decision-making for them, and they have improved their level of understanding of competitors strategies through strategic planning.
The study revealed that the nature of SME business requires specific, predetermined behavior by means of formal direction and control to be successful, and strategic planning structures and systems in the business contribute towards building SME organizational capabilities that drive performance. The study indicated that SME owners/ managers are keen on monitoring and identifying trends or cycles of some kind in order to find patterns of the market trend, and entrepreneurs monitor their environment by collecting information in all environmental sectors, sort out relevant information and adjust their business to meet future forecasts. The study showed that, the existence of the support programmes that provide SME business with a back-up plan has ensured that SME businesses are strengthened and have realized growth, and SME businesses have an advantage in terms of making quick decisions and the willingness to take risks.
The study showed that setting performance targets a allows SME owners/ managers to translate organization vision and strategy into strategic objectives that are associated with medium to long-term goals, and also to reconfigure existing business capabilities and also build new capabilities. The study revealed that SME owners/ managers normally do not grant rewards to employees to influence their behavior, and SME owners/ managers have a feedback systems in place that influences the development of new capabilities and organizational learning, and feedback given by customers helps SME businesses to reinforce their operational systems and subsequently turns out to be more focused.
The study concludes that SME owners/ managers normally do not grant rewards to employees to influence their behavior, and SME owners/ managers have a feedback systems in place that influences the development of new capabilities and organizational learning. High competition in the market has reinforced owners/ managers’ ability in making effective choices about when to leave marketplaces and about which new ones to move into and being innovative. The study recommends SME owners/ managers to employ the use of rewards for their employees. Rewards either intrinsic or extrinsic are normally used by large organizations to influence employee behavior with relation to them improving performance. SME’s could also apply the same to facilitate better performance from their employees